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Galaxy: Mass up, VIP down

Adjusted EBITDA was up 31 pct y-o-y, while VIP revenue fell 5 pct as mass increased 15 pct

Galaxy Entertainment Group (GEG) saw a 15 per cent year-on-year uptick in its total mass table games revenue, while its VIP revenue declined 5 per cent in the first quarter of the year compared to the same period last year, according to the group’s results published with the Hong Kong Stock Exchange. Mass revenue amounted to HK$5.8 billion, while VIP amounted to HK$6.8 billion, with total gaming revenue in the quarter reaching HK$13.1 billion, a 4 per cent year-on-year increase.
The group’s adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) saw a 31 per cent year-on-year increase during the quarter, hitting HK$3.2 billion, a 7 per cent quarter-to-quarter increase. The group notes that ‘these results were achieved despite additional capacity entering the market in the later part of 2016’.
For the group’s properties, its flagship Galaxy Macau ‘is the primary contributor to Group revenue and earnings,’ notes the release, with the property’s overall revenue going up 5 per cent year-on-year, ‘the best revenue quarter in over two years,’ notes the filing. The property also saw a 27 per cent uptick in adjusted EBITDA, to HK$2.6 billion.
VIP gaming revenues saw a 6 per cent fall year-on-year to HK$5.1 billion, with rolling chip for the first quarter down 1 per cent year-on-year at HK$131.8 billion. Mass gaming saw a 21 per cent uptick at the property, hitting HK$4 billion, while electronic gaming revenue jumped 19 per cent year-on-year, reaching HK$454 million.
Non-gaming was up 6 per cent compared to the same period last year, reaching HK$707 million. ‘The combined five hotels registered strong occupancy of 97 per cent in the first quarter 2017,’ notes the filing.
In addition net rental revenue from The Promenade, the group’s shopping area, was up 13 per cent year-on-year, reaching HK$222 million.
The group’s StarWorld property, on the Peninsula, ‘had bad luck in its gaming operations,’ leading to a HK$25 million drop in its EBITDA. VIP revenue on the property was up 3 per cent year-on-year to HK$1.7 billion, while mass was up 10 per cent year-on-year, to HK$1.3 billion. The group’s slot handle at the property was up 290 per cent year-on-year in the first quarter, to HK1.59 billion.
The group’s Broadway property saw a 43 per cent drop in mass gaming revenue, contributing to a 25 per cent year-on-year drop in its overall revenue, at HK$135 million.
The property boasted ‘virtually 100 per cent’ occupancy during the quarter, notes the filing.